In the past few days, friends in the crypto world probably feel like their hearts are shattered. Watching the red numbers bouncing in their accounts, many are asking: "I bought Bitcoin, not Microsoft or Google. Why are my coins crashing along with the tech stocks in the US?"
The market's start in 2026 has indeed been a bit "heart-wrenching". Bitcoin has dropped from last year's crazy high of $126,000 in October, breaking through the psychological barrier of $65,000, with a decline of nearly 50%. What exactly happened? How should newcomers operate to stop the bleeding? Today, let's avoid those complex financial terms and break it down in the most straightforward way.
1. Why does the US stock market 'catch a cold' and the crypto market has to 'sneeze'?
Many newcomers think cryptocurrencies are 'digital gold' and should be safe havens. But the reality is harsh: in the eyes of those big Wall Street institutions, Bitcoin (BTC) and Ethereum (ETH) currently resemble a 'leveraged tech stock' more.
Case Breakdown: The 'bill' from the big companies scared everyone.
The spark of this sell-off actually came from tech giants like Google (Alphabet) and Microsoft.
Truth of the Matter: At the beginning of 2026, Google announced that to develop AI (artificial intelligence), they would spend $185 billion in a year.
Market Reaction: Investors were stunned to hear that with so much money spent, when could they make it back? So everyone started selling tech stocks.
Chain Reaction: When tech stocks drop, money in the market becomes 'tight'. Institutions, in order to preserve cash flow or cover losses, will prioritize selling their most liquid and highest-risk assets. Unfortunately, cryptocurrencies become the 'ATM' for large institutions.
2. Triple Pressure: This is why you are being 'cut'.
In addition to the US stock market crash, this major drop has several hidden 'killers':
Liquidity Drying Up: Simply put, there are fewer buyers and more sellers. Once it breaks key positions (like the previous $75,000), many people's leveraged positions will be forcibly liquidated, triggering a cascade; that’s why it feels like there’s no bottom when it drops.
Hawkish Federal Reserve: The market is buzzing that the Fed will continue to reduce its balance sheet, which means there will be less hot money in the market. Without money coming in, the coin prices naturally can’t hold.
Institutions are retreating: Data shows that since November 2025, spot Bitcoin ETFs have seen large outflows for three consecutive months.
3. Professional Analysis: Is this a 'crash' or a 'washout'?
Historically, a 40%-50% pullback in the crypto market is actually 'commonplace'.
Let's take a look at the data comparison:
In-depth Insight: The current adjustment feels more like a 'risk reboot'. The enthusiasm for AI hasn't changed, nor has the technology behind blockchain; what has changed is the level of greed. If you ask if this is the end? Historically, downturns caused by external environments (like the US stock market) are often 'golden opportunities' for long-term capital to position.
4. Life-saving/Turnaround Operation Suggestions for Crypto Newbies.
Stop blindly averaging down! During the current volatile period, you need a set of practical strategies:
✅ Recommended Actions (Do's):
Phased Entry (Dollar-Cost Averaging): Since it’s hard to accurately predict the bottom (no one can), divide your capital into 5-10 portions. For example, invest one portion every time it drops by $5,000.
Focus on Support Levels: Currently, $60,000 - $63,000 is crucial. If it holds steady, a rebound is likely; if it breaks, the next stop may be $50,000.
Hold Bitcoin (BTC) for Safety: In this market, altcoins often drop 2-3 times more than BTC. Prioritize survival before seeking profit.
❌ Absolutely Avoid (Don'ts):
Absolutely avoid high leverage! The volatility is extreme right now; a single spike can wipe out your account.
Don't operate based on breaking news: There’s a flood of messages now, one moment saying it will rebound to $100,000, the next saying it will go to zero. Close your eyes and look at the bigger trend.
Conclusion: The last one standing is the king.
The charm of the crypto world lies in its ability to take you through the abyss and also elevate you to the clouds. The current 'global tech stock sell-off' is a minor macro episode; it washes out speculators and leaves behind true believers.
